12th Sep 2018 16:46
LONDON (Alliance News) - Vanadium producer Bushveld Minerals Ltd said Wednesday that the unprotected industrial action at Vametco mine located near Pretoria, South Africa, has continued and workers have not yet returned to work.
The company said the illegal strike relates to claims by the local leadership of the majority union at Vametco, Association of Mineworkers and Constructions Union, for a payment of cash in respect of an Employee Share Options Scheme.
The claim has no basis, the company added. In May, Bushveld Minerals and workers, as represented by AMCU, signed an agreement in terms of which an amount of ZAR20,000 was paid to each bargaining employee, as compensation for historical payments that could have been paid had an ESOPS structure been in place. The agreement constituted a full and final settlement for any historic ESOPS liabilities of the company.
Bushveld Minerals said that it has taken all reasonable steps to urge workers to stop the illegal strike and return to work including meeting with union leaders, engaging directly with workers, applying for an injunction to declare the industrial action illegal and issuing workers with ultimatums in line with South African labour laws.
"While the ESOPS issue is a historical issue that pre-dates Bushveld Minerals' acquisition of Vametco, we are determined to resolve it through negotiations in a manner that is both respectful and mutually acceptable. We have communicated that a sound relationship with all our stakeholders, not least our workers and local communities, is an important part of our strategy and we trust that our good faith will in time be lead to a fair and permanent solution. Bushveld's Management is proactively dealing with the matter and satisfied with the approach adopted to resolve the situation without delay," said Chief Executive Fortune Mojapelo said.
Shares in Bushveld Minerals closed at 19.50 pence each.
Related Shares:
Bushveld Minerals